electrolux capital markets day 2012 - presentation alberto zanata
DESCRIPTION
Electrolux Capital Markets Day. November 14, 2012, Stockholm, Sweden. Together with senior management, the President and CEO of Electrolux, Keith McLoughlin will present the Group’s strategy to create further sustainable economic value at today’s capital markets day.TRANSCRIPT
Professional Professional heritageheritageheritage heritage
AlbertoAlberto ZanataZanataAlberto Alberto ZanataZanataHead of Professional Head of Professional ProductsProductsProductsProducts
Electrolux professional Electrolux professional business operationsbusiness operations
Key player in Key player in the global marketthe global market
Professional appliance sales by company and product type
11.312.4
84.5
[SEKbn] 2011Total market = SEK 136bn
Food Service Laundry Service Ice cream
9.6
100% 90% 5.95 2
9%
100%100% 90%
63%
37%1.1
70%30%
100%
5.2
100%
3.5
100%
3.0
1%
Electrolux MieleMiddleby Rational Alliance OthersITW Ali Group
Manitowoc
9.1% 8.3% 7.1% 4.3% 3.8% 2.6% 2.2% 0.8% 61.8%Value market share
3Source: Annual reports & Internal sources.
share
Electrolux Professional Electrolux Professional country mixcountry mix
Global Market
10%
2011
FOOD SERVICE
Electrolux Net sales
22%4%
61%
30%SEK 116bn48%
30%
22%
16%SEK 3.7bn
Global
LAUNDRY
2%
6%
market share
3.2%
17%23%SEK 21bn
50%
13%
SEK 2.2bn33%
60% 37%Global market share
7%10.8%
4
Western Europe Other Western countries Emerging markets
Trends in theTrends in theTrends in the professional food and Trends in the professional food and laundry industrylaundry industry
Trends impacting Trends impacting the industrythe industry
Growing Major New trends in Consumers gdemand in emerging markets
jappliances for laundry entering the professional
eating out impacting the food service
inspired by professionals
6
pmarket industry
TrendsTrendsTrendsTrends
Growing demandGrowing demand but Southern Europe impacted by the recessionrecession
Institutions and governmentand government spending declining Change in
user habits
Electrolux ProfessionalElectrolux Professional-- PerformancePerformance
Electrolux ProfessionalElectrolux ProfessionalLocations Locations
Sales & service in over 100 countries
European factory locationsItaly: VallenoncelloSweden: LjungbyFrance: Aubusson, St. Vallier, TroyesSwitzerland: Sursee
Asian factory locationThailand: Rayong
9
A stable financial A stable financial performanceperformance
Net sales Net assets and RONAOperating income
12%8 000
SEKm Growth
80%
100%
1 200
1 500
SEKm RONA
12%
15%
800
1 000
SEKm Operating margin
0%
6%
4 000
6 000
40%
60%
600
900
6%
9%
12%
400
600
800
-12%
-6%
0
2 000
2007 2008 2009 2010 20110%
20%
0
300
2007 2008 2009 2010 20110%
3%
0
200
2007 2008 2009 2010 2011
10
Electrolux ProfessionalElectrolux Professionalstrengths & uniquenessstrengths & uniqueness
Th B d L d hi i Gl b l iThe BrandElectrolux is the #1 brand worldwide.The onl f ll s stem
Leadership in innovationElectrolux is known to be the ind str
Global presence in projects Electrolux is the only compan able toThe only full system
solution provider.be the industry leader in providing innovative solutions.Electrolux is a
company able to provide both Food Service and Laundry equipment for largeElectrolux is a
synonym for “Green” solutions.
equipment for large projects worldwide.
11
Growth opportunitiesGrowth opportunitiesGrowth opportunitiesGrowth opportunities
Q i k i E i k t C i l l d
Possibilities to further grow in:
Quick-service restaurants and full-service restaurant chains thanks to
Emerging markets thanks to the development of the alread ser ed
Commercial laundrythanks to the unique solution offer and c stomer segmentchains thanks to
innovative solutions and “green” approach in manufacturing and
already served international hotel chains and international
customer segment specialization.
in manufacturing and product performances.
international consultants with global influence looking for “one stop shop” bothone stop shop both from product and, mainly, service sides.
12
Our strategy in the Our strategy in the Professional businessProfessional business
Profitable growth2011 2015Profitable growth2011 20152011 - 20152011 - 2015
Strategy to growStrategy to growStrategy to growStrategy to grow
Increase penetration in new segments to rebalance gcountry/segment mix
Strengthening leadership in
productExpansion in emerging marketsproduct
innovation
g g
Expansion in adjacent segments
14
These investments will be financed through product-cost and other cost-reduction initiatives.
Innovative products Innovative products to be launched to be launched
NE
LS
New
S/ C
HA
NN
AR
KE
TS
xist
ing Sales
SEK 5,882m
Product portfolioRenewal to maintain position as industry
MA
Ex 2011
p yleader for technology & sustainability
15PRODUCTS
Existing New
Expansion in new Expansion in new segments and marketssegments and markets
Selected emerging markets such as BRIC
NE
LS
New
markets such as BRIC.Uncovered segments such as commercial restaurant chains
S/ C
HA
NN restaurant chains
AR
KE
TS
xist
ing Sales
SEK 5,882m
MA
Ex 2011
16PRODUCTS
Existing New
Expansion in Expansion in adjacent segmentsadjacent segments
Adjacent segments such as small laundry
New
such as ... small laundry operations not requiring full professional performance
NE
LSS
/ CH
AN
N
xist
ing
AR
KE
TS
Sales SEK 5,882m
ExMA
2011
17
Existing NewPRODUCTS
Professional strategy Professional strategy Overall summaryOverall summary
Selected emerging markets such as BRIC
Adjacent segments such as small laundry
New
markets such as BRIC.Uncovered segments such as commercial restaurant chains
such as ... small laundry operations not requiring full professional performance
NE
LS
restaurant chains
Product portfolioS/ C
HA
NN
xist
ing
Product portfolioRenewal to maintain position as industry leader for A
RK
ETS
Sales SEK 5,882m
Ex technology &
sustainability
MA
2011
18
Existing NewPRODUCTS
Entering a Entering a new segmentnew segment
Selected emerging markets such as BRIC
Adjacent segments such as small laundry
Expansion into adjacent
New
markets such as BRIC.Uncovered segments such as commercial restaurant chains
such as ... small laundry operations not requiring full professional performance
into adjacent segments outside the industry.
Grand Cuisine isNE
LS
restaurant chains
Product portfolio
Grand Cuisine is also expected to create a halo effect for the overall ElectroluxS
/ CH
AN
N
xist
ing
Product portfolioRenewal to maintain position as industry leader for
overall Electrolux brand.
AR
KE
TS
Sales SEK 5,882m
Ex technology &
sustainability
MA
2011
19
Existing NewPRODUCTS
Strategy to enter a new Strategy to enter a new customer segment customer segment in in the the consumer consumer industryindustryElectrolux Grand CuisineElectrolux Grand Cuisine
Consumer targetConsumer targetConsumer targetConsumer target
ENTERTAINERS
FOODIES
21
Luxury kitchen market Luxury kitchen market up to 50,000 kitchens/yearup to 50,000 kitchens/year
Average market size of ~30,000 kitchens North America and Europe with most potential
Indicative # of kitchens/yearBased on spend in
luxury home & furniture36,000
y10,000
9,0008,000
Based on # of UHNWIs
Electrolux ti t
Estimated total number of
of UHNWIs25,700
1 500 1 500
estimate22,600
Ultra High End kitchens per year of 22,600 – 36,000
North America
AsiaPacific
Europe
1,500 1,500
Middle East /Africa
South/Latin America
22
Based on that Ultra High Net Worth Individuals (UHNWI ) own 2.5 apartments on average and that kitchen is remodeled/renovated every 10th year.Source: IPSOS market research 2009-2011; "World Wealth Report 2011" (Merrill Lynch); "World Wide Markets Monitor " (Altagamma); "The Wealth Report 2011" (Knight Frank); Expert Interviews; BCG analysis.
Cooking systemCooking systemCooking systemCooking system
23
Many innovative technologies are born in th P f i l i d t h fthe Professional industry where performance can justify higher prices and costs. These t h l i b d t d t thtechnologies can be adapted to the consumer market resulting in products with great f ti lit d titi d tfunctionality and competitive advantages.
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